This holiday season, Canadians can expect some welcome financial relief at the checkout, thanks to a proposed new government initiative. From December 14, 2024, to February 15, 2025, a temporary Goods and Services Tax/Harmonized Sales Tax (GST/HST) break will apply to a wide range of groceries and holiday essentials.

The two-month tax holiday is designed to make everyday purchases more affordable, putting more money back in Canadians' pockets during one of the busiest shopping periods of the year.

What’s Covered?

The proposed tax relief applies to a variety of qualifying goods, including:

• Groceries and Prepared Foods: From pantry staples to restaurant meals and snacks.
• Children’s Essentials: Clothing, footwear, diapers, and car seats.
• Holiday and Seasonal Items: Christmas trees (real or artificial) and toys for children under 14.
• Printed Media: Printed books and newspapers (digital or heavily advertising-focused items are excluded).
• Gift Items: Certain video-game consoles and accessories, board games, and puzzles.

This initiative includes both items purchased in-store and qualifying imports during the relief period.

How Much Can You Save?

The government estimates that this GST/HST break will provide $1.6 billion in federal tax relief. Families could see significant savings:

• In provinces with GST only, such as British Columbia, a family spending $2,000 on qualifying goods might save $100.
• In HST-applicable provinces, like Ontario, families could save up to $260 on the same purchases.

These savings apply directly at checkout, meaning no extra steps are required from consumers.

Why It Matters

With rising living costs, this measure offers tangible support to help Canadians afford essential items and celebrate the holidays with less financial strain. Whether it’s stocking up on groceries, buying gifts for the kids, or enjoying a meal out, this tax break aims to reduce the burden on households across the country.

How Businesses Will Adapt

Starting December 14, 2024, businesses are expected to automatically remove the GST/HST from eligible purchases. The adjustment applies seamlessly to both in-store and online transactions for qualifying goods.

Key Dates

• Start Date: December 14, 2024
• End Date: February 15, 2025

This limited-time measure is a meaningful step toward supporting Canadians during the holiday season. Make the most of this tax relief while it lasts and enjoy extra savings as you shop, dine, and celebrate!